Fantastic job folks!
I agree with the sentiment that we should pick an item that can be used by any character, regardless of class or race. That would exclude headgear and make weapons, armour and shields problematic. The obsidian inlay sword idea is awesome, and the design there is a sweet homage. Maybe it can be transitioned to some other kind of item. Say, an obsidian figurine that is equipped into a quick-item slot that summons a free-fighting sword from obsidian infused wood/ivory (Assuming that they have a free-fighting weapon again). Or an amulet, belt or any similar item that incorporates this fantastic design of the Black Isle logo as an obsidian inlay (Assuming they have the rights to use the Black Isle logo).